ChinaÆs external assets reach $1.55 trillion, says Fitch

As ChinaÆs foreign exchange reserves and other external assets continue their inexorable rise, all eyes are on the governmentÆs new foreign exchange investment agency.

According to a new report by ratings agency Fitch in Hong Kong, Chinese holdings of US Treasury securities amounted to $350 billion at end-2006, and Fitch estimates that a further $230 billion has been spent on US Agency bonds.

According to the report, average monthly net purchases of US Treasuries have been unchanged for the past two years while net purchases of US Agency bonds are rising.

Since 2004, the average annual addition to foreign-exchange reserves has been$220 billion,...